In the aftermath of new state safety regulations following the Champlain Towers collapse in Surfside, Florida’s condominium market has experienced significant changes. However, Palm Beach appears to be weathering the impact better than other areas.
The new laws require milestone inspections and reserve studies for all residential buildings over 30 years old. These measures have resulted in costly assessments for many condo owners across Florida, with some facing financial strain. In Palm Beach, though, affluent residents are managing these expenses more easily.
“Everybody’s reading the same doom and gloom about this market,” said Scott Gordon, a Douglas Elliman agent in Palm Beach. “For the luxury market, those buildings are in better shape than they’ve been in a decade.”
Palm Beach features dozens of condominiums subject to the new regulations. The first half of the year saw challenges due to increased insurance rates and competition from new developments in West Palm Beach. Still, as winter approaches—a busy season for real estate—the local condo market is showing signs of recovery.
Redfin data indicates that the median sale price for condos in Palm Beach has risen to $2.7 million. Currently, 164 units are listed for sale at prices ranging from $315,000 to $17.9 million. Earlier this month, one buyer spent $9.4 million on a unit at Bellaria after selling another property for $30 million.
Assessment and repair costs are averaging between $75 and $100 per square foot—amounting to approximately $150,000 to $200,000 for a typical 2,000-square-foot unit—primarily covering concrete restoration needs.
“All these buildings have either completed [assessments and repairs] or have almost completed them,” said Corcoran Group’s Dana Koch.
By contrast, other parts of South Florida face greater difficulties with these fees. For example, Howard Konetz at Aventura’s Mediterranean Village faces a $224,000 assessment fee on a fixed income and was unable to sell his unit despite multiple price reductions.
Market experts say that most Palm Beach condo owners have enough resources to address such issues quickly; as a result, many buildings are now in improved physical and fiscal condition compared to recent years. Chris Leavitt from Douglas Elliman noted that design updates are also helping sales: “It really highlights the buildings that are in perfect condition.” He referenced recent renovations at Biltmore at 150 Bradley Place as an example contributing to successful deals there.
Another factor aiding sales is that older condos offer immediate availability compared with lengthy waits for new developments elsewhere in West Palm Beach. Buyers today arrive informed about building conditions and regulatory compliance requirements.
“Buyers have just gotten smart. They will ask, ‘Have you done your milestone inspection? Have you done this? Have you budgeted for it?’” said Suzanne Frisbie of Corcoran Group.
Sellers have also adjusted their expectations since the pandemic boom period ended.
“Prices are coming down to reflect the reality of the market,” Gordon said. “In order to get a lot of these deals done, the sellers have been much more receptive to paying off special assessments just to move the deals forward.”
Dana Koch shared an example where one seller paid $62,000 toward assessment fees as part of closing a deal. Some buildings—including Cove at 2784 South Ocean Boulevard, Meridian at 3300 South Ocean Boulevard and Halcyon at 3440 South Ocean Boulevard—now include ‘due on sale’ clauses requiring sellers pay off outstanding assessments before completing transactions. Gordon described one such case involving Meridian’s $10 million loan-funded repairs: “I think every contract that we’ve written lately has a ‘due on sale’ clause for the special assessment,” he said. “The seller in almost every sale that we’ve done is responsible for the full payment of the assessments.”
